Barfresh Food Group Reports 32% Revenue Increase to $10.7 Million for Fiscal Year 2024

Barfresh Food Group Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2024, achieving $10.7 million, a 32% rise from $8.1 million in 2023. This growth was primarily driven by enhanced sales of its Twist & Go smoothies, which benefited from improved inventory availability and the successful reintroduction of its WHIRLZ 100% juice product. However, the cost of revenue also rose, totaling $7.0 million, up 34% from the previous year, largely due to expenses associated with relocating production lines. The company's gross profit margin slightly decreased to 34% from 36% in 2023, although it improved to 37% when excluding relocation costs.

In terms of operational changes, Barfresh has focused on expanding its product offerings and market reach. The company launched its ready-to-eat juice pop, "Pop & Go," in late 2024, targeting school meal programs. Additionally, Barfresh has secured contracts to supply its products to over 100 military bases, further diversifying its customer base. The company has also been actively working to resolve ongoing disputes with a contract manufacturer, which previously supplied a significant portion of its products, and has engaged in litigation financing to support its claims.

Barfresh's selling, marketing, and distribution expenses increased by 20% to $3.1 million, reflecting higher personnel costs and expanded broker networks. General and administrative expenses also rose by 13% to $3.0 million, driven by increased stock-based compensation and recruiting costs. Despite these increases, the company reported a net loss of approximately $2.8 million for both 2024 and 2023, indicating ongoing challenges in achieving profitability.

As of December 31, 2024, Barfresh's working capital decreased to $606,000 from $2.3 million in the previous year, primarily due to operational losses and legal expenses related to its manufacturing dispute. The company has taken steps to improve liquidity, including securing a receivables-based line of credit and compensating employees with equity to reduce cash outflows. Looking ahead, Barfresh aims to ramp up sales and control operating expenses to enhance its financial position, although it acknowledges the risks associated with its current production capabilities and market acceptance of new products.

Overall, Barfresh Food Group Inc. continues to navigate a competitive landscape while striving to expand its product offerings and customer base. The company remains focused on addressing operational challenges and improving its financial performance, with a cautious outlook for the upcoming fiscal year.